Article 2.18. Goods Re-Entered after Repair or Alteration Duty-Free Entry of Commercial Samples of Negligible Value and Printed Advertising Materials (3)
Each Party shall grant duty-free entry to commercial samples of negligible value, and to printed advertising materials, imported from the territory of the other Party, regardless of their origin, but may require that:
(a) commercial samples be imported solely for the solicitation of orders for goods or services provided from the territory of the other Party or a non-Party; or
(b) advertising materials be imported in packets, that each contain no more than one copy of each such material, and that neither the materials nor the packets form part of a larger consignment.
Article 2.19. Exchange of Data
1. The Parties recognise the value of trade data to accurately analyse the implementation of this Agreement. The Parties shall cooperate with a view to conducting periodic exchanges of available data relating to trade in goods between the Parties, including data on tariff preference utilisation.
2. The exchange of trade data in accordance with paragraph 1 of this Article, shall take place between the Parties in advance of the meeting of the Trade in Goods Sub-Committee, unless otherwise agreed by the Parties.
Article 2.20. Sub-Committee on Trade In Goods
1. The Sub-Committee on Trade in Goods established pursuant to Article 19.4 (Establishment of Sub-Committees) shall comprise of representatives of each Party.
2. The Sub-Committee shall meet once a year or meet on the request of the other Party at a mutually agreed time, venue, and means, to consider any matter arising under this Chapter. The Sub-Committee may carry out its work through whatever means that are appropriate, which may include electronic mail, videoconferencing, or other means.
3. The functions of the Sub-Committee shall include:
(a) monitoring and reviewing the implementation and administration of this Chapter, and making a report and recommendations, if appropriate;
(b) promoting trade in goods between the Parties, including through consultations on accelerating or improving the scope of preferential treatment or tariff elimination under this Agreement and other issues as appropriate;
(c) promptly addressing barriers to trade in goods between the Parties including those related to the application of non-tariff measures which may restrict trade in goods between the Parties and, if appropriate, referring such matters to the Joint Committee for its consideration;
(d) providing advice and recommendations to the Joint Committee on cooperation needs regarding trade in goods matters;
(e) reviewing the amendments to the Harmonized System (HS) to ensure that each Party’s obligations under this Agreement are not altered, and consulting to resolve any conflicts between such amendments to the Harmonized System (HS) and Annex 2A (Schedule of Tariff Commitments for Goods) and national nomenclatures;
(f) consulting on and endeavoring to resolve any difference that may arise among the Parties on matters related to the classification of goods under the Harmonized System (HS), including adoption and review of transposition methodologies and guidelines;
(g) reviewing data on trade in goods in relation to the implementation of this chapter;
(h) assessing matters that relate to trade in goods and undertaking any additional work that the Joint Committee may assign to it; and
(i) reviewing and monitoring any other matter related to the implementation of this chapter
Chapter 3. RULES OF ORIGIN
Article 3.1. Definitions
For the purposes of this Chapter:
aquaculture means the farming of aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates, and aquatic plants, from seed stock, including seed stock imported from non-parties, such as eggs, fry, fingerlings and larvae, parr, smolts, or other immature fish at a post-larval stage, by intervention in the rearing or growth processes to enhance production such as regular stocking, feeding, or protection from predators;
customs value means the value as determined in accordance with the Customs Valuation Agreement;
change in tariff classification means a change at the two-digit, four-digit, or six-digit level of the Harmonized System;
competent authority refers to:
(a) for New Zealand, the government authority or other authorities designated by New Zealand or any other successor notified from time to time; and
(b) for UAE, to the Ministry of Economy or any other successor notified from time to time;
issuing authority refers to:
(a) for New Zealand, the government authority or other authorities designated by New Zealand or any other successor notified from time to time; and
(b) for UAE, to the Ministry of Economy or any other successor notified from time to time;
consignment means goods which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice;
Generally Accepted Accounting Principles means those principles recognised by consensus or with substantial authoritative support in the territory of a Party with respect to the recording of revenues, expenses, costs, assets, and liabilities; the disclosure of information; and the preparation of financial statements. These principles may encompass broad guidelines for general application, as well as detailed standards, practices, and procedures;
good means any merchandise, product, article, or material;
manufacture means any kind of working or processing, including assembly or specific operations;
material means a good that is used in the production of another good including any ingredient, raw material, component or part;
non-originating good or non-originating material means a good or material that does not qualify as originating in accordance with this Chapter;
originating good or originating material means a good or material that qualifies as originating in accordance with this Chapter;
production means operations, including growing, cultivating, raising, mining, harvesting, fishing, trapping, hunting, capturing, collecting, breeding, extracting, gathering, manufacturing or assembling a good, or aquaculture;
producer means a person who engages in the production of a good in the territory of a Party,
Section A. ORIGIN DETERMINATION
Article 3.2. Originating Goods
Except as otherwise provided in this Chapter, each Party shall provide that a good is originating if it is: (a) wholly obtained or produced entirely in the territory of either of the Parties;
(b) produced entirely in the territory of a Party, exclusively from originating materials of either of the Parties; or
(c) produced entirely in the territory of a Party using non-originating materials, provided the good satisfies all applicable requirements of Annex 3A (Product Specific Rules of Origin),
in each case, provided the good satisfies all other applicable requirements of this Chapter.
Article 3.3. Wholly Obtained or Produced Goods
For the purposes of paragraph (a) of Article 3.2 (Originating Goods), the following goods shall be deemed to be wholly obtained or produced in the territory of a Party:
(a) plants, fungi, and plant goods grown, collected, or harvested there;
(b) live animals born and raised there;
(c) goods obtained from live animals there;
(d) mineral goods or natural resources extracted or taken from that Party's soil, subsoil, waters, seabed, or beneath the seabed;
(e) goods obtained by hunting, trapping, collecting, capturing, fishing, or aquaculture conducted there;
(f) fish, shellfish, and other marine life taken from the sea, seabed, or subsoil, in accordance with international law, outside the territorial sea of the Parties and outside the territorial sea of non-parties by vessels that are registered, listed, or recorded with a Party and entitled to fly the flag of that Party, and any good produced from these goods on a factory ship that is registered, listed, or recorded with a Party and entitled to fly the flag of that Party;
(g) minerals, mineral products, and other non-living natural resources, taken or extracted from the seabed, subsoil, or ocean floor of the Parties' exclusive economic zone or continental shelf, provided that that Party or person of the Party has rights to exploit that seabed, subsoil, or ocean floor;
(h) a good that is:
(i) waste or scrap derived from production there; or
(ii) waste or scrap derived from used goods collected there, provided that those goods are fit only for the recovery of raw materials; and
(iii) goods produced or obtained there exclusively from goods referred to in subparagraphs (a) through (i) of this Article, or from their derivatives, at any stage of production.
Article 3.4. Regional Value Content
Where Annex 3A (Product Specific Rules of Origin) specifies a regional value content test to determine whether a good is originating, each Party shall provide that the regional value content (RVC) shall be calculated using either of the following two formula:
(a) RVC = ExWorks Price-V.N.M / ExWorks Price x 100
(b) RVC = FOB Price-V.N.M / FOB Price x 100
where Ex-Works Price is used, the RVC requirement shall be five percentage points lower than the RVC requirement which is calculated on the basis of FOB Price.
where:
RVC is the regional value content of a good expressed as a percentage;
FOB Price is the price of the good free on board, inclusive of the cost of transportation to the port or site of final shipment abroad, regardless of the mode of transportation;
Ex-Works Price is the price paid or payable for the good ex-works to the manufacturer in the Party in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used, minus any internal taxes which are, or may be, repaid when the good obtained is exported;
V.N.M is:
(a) the customs value at the time of importation of the non-originating materials used including freight and insurance costs incurred in transporting the material to the importation port in the territory of the Party where the producer of the good is located or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in the exporting Party;
(b) where the producer of a good acquires non-originating materials in the territory of the Party where the producer is located, the value of such materials shall not include freight, insurance, packing costs and any other costs incurred in transporting the material from the supplier's warehouse to the producer's location; or
(c) in the case of a self-produced material or where the relationship between the producer of the good and the seller of the material influences the price actually paid or payable for the material, the sum of all costs incurred in the production of the material, including general expenses. Additionally, it will be possible to add an amount for profit equivalent to the profit added in the normal course of trade.
Article 3.5. Intermediate Goods
If a good which has obtained originating status in a Party is used as a material in the manufacture of another good, no account shall be taken of the non-originating materials which may have been used in its manufacture.
Article 3.6. Accumulation
1. An originating good of a Party which is used in the processing or production in the territory of the other Party as material for finished goods shall be deemed as a material originating in the territory of the latter Party where the working or processing of the finished goods has taken place.
2. Notwithstanding paragraph 1, an originating good of a Party that does not undergo processing beyond the insufficient working or processing operations listed in Article 3.8 (Insufficient Working or Processing) in the other Party shall retain its originating status of the former Party.
3. The Parties will review this Article within five years of entry into force of this Agreement. This review will consider the extension of the application of cumulation in paragraph 1 to:
(a) all production undertaken and value added to a good within the Parties;
(b) accumulation between the Parties and a non-party should there be a free trade agreement between each of the Parties and the non-party; and
(c) other forms of accumulation that the Parties may deem fit.
Article 3.7. Tolerance
Each Party shall provide that a good containing non-originating materials that do not satisfy the applicable change in tariff classification requirement specified in Annex 3A (Product Specific Rules of Origin) for the good is nonetheless an originating good if:
(a) the value of those non-originating materials that do not satisfy the applicable change does not exceed 15 percent of the value of the good (1); and
(b) the good meets all other applicable requirements of this Chapter. However, the value of such non-originating materials shall be included in the value of non-originating materials for any applicable regional value content requirement.
Article 3.8. Insufficient Working or Processing
1. Notwithstanding any provisions of this Chapter, the following operations, when undertaken on non-originating materials to produce a good, shall be considered as insufficient working or processing to confer on that good the status of an originating good:
(a) slaughter of animals;
(b) operations to ensure the preservation of products in good condition during transport and storage such as drying, freezing, ventilation, chilling and like operations;
(c) sifting, washing, cutting, slitting, bending, coiling or uncoiling, sharpening, simple grinding, slicing;
(d) cleaning, including removal of oxide, oil, paint or other coverings;
(e) simple painting and polishing operations;
(f) testing or calibration;
(g) placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards, and packaging operations;
(h) simple mixing of goods, whether or not of different kinds;
(i) simple assembly of parts of products to constitute a complete good or disassembly of products into parts;
(j) changes of packing, unpacking or repacking operations, and breaking up and assembly of consignments;
(k) affixing or printing marks, labels, logos and other like distinguishing signs on goods or their packaging;
(l) busking, partial or total bleaching, polishing and glazing of cereals and rice; and
(m) mere dilution with water or another substance that does not materially alter the characteristics of the goods.
2. For the purposes of paragraph 1, the terms “simple” and “simple mixing” mean:
(a) “Simple” generally describes an activity which does not need special skills, machines, apparatus, or equipment especially produced or installed for carrying out the activity.
(b) “Simple mixing” generally describes an activity which does not need special skills, machine, apparatus, or equipment especially produced or installed for carrying out the activity. However, simple mixing does not include chemical reaction.
Article 3.9. Indirect Materials
In determining whether a good is an originating good, any of the following materials used in its production shall be treated as originating material irrespective of their true origin:
(a) fuel, energy, catalysts, and solvents;
(b) equipment, devices, and supplies used to test or inspect the good;
(c) gloves, glasses, footwear, clothing, safety equipment, and supplies;
(d) tools, dies, and moulds;
(e) spare parts and materials used in the maintenance of equipment and buildings;
(f) lubricants, greases, compounding materials, and other materials used in production or used to operate equipment and buildings; or
(g) any other material that is not incorporated into the good but the use of which in the production of the good can reasonably be demonstrated to be a part of that production.
Article 3.10. Accessories, Spare Parts, Tools
1. Accessories, spare parts, tools, and instructional or other information materials delivered with a good that form part of the good's standard accessories, spare parts, tools, and instructional or other information materials shall be regarded as a part of the good, and shall be disregarded in determining whether or not all the non-originating materials used in the production of the originating goods undergo the applicable change in tariff classification provided that:
(a) the accessories, spare parts, tools, and instructional or other information materials are classified with and not invoiced separately from the good; and
(b) the quantities and value of the accessories, spare parts, tools, and instructional or other information materials presented with the good are customary for the good.
2. Notwithstanding paragraph 1, if the good is subject to RVC requirement, the value of the accessories, spare parts, tools and instructional or other information materials shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.
Article 3.11. Packaging Materials and Containers for Retail Sale
Each Party shall provide that packaging materials and containers in which a good is packaged for retail sale, if classified with the good according to Rule 5 of the General Rules for the Interpretation of the Harmonized System, are:
(a) disregarded in determining whether the non-originating materials used in the production of the good have satisfied the applicable process or change in tariff classification required by this chapter, or whether the good is wholly obtained or produced; and
(b) taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.
Article 3.12. Unit of Qualification
For the purposes of this chapter, the unit of qualification shall be the particular product which is considered as the basic unit when determining classification under the Harmonized System. Accordingly, the Parties agree:
(a) when a product composed of a group or assembly of articles is classified under a single heading, the whole constitutes the unit of qualification; and
(b) when a consignment consists of a number of identical products classified under the same heading, each product shall be taken individually into account when in determining whether it qualifies as an originating good.
Article 3.13. Packaging Materials and Containers for Transportation and Shipment
Each Party shall provide that packing materials and containers for transportation and shipment are disregarded in determining whether a good is originating.
Article 3.14. Fungible Goods and Materials
1. Each Party shall provide that the determination of whether fungible goods or materials are originating shall be made through physical segregation of each good or material. If physical segregation is not practicable, the deterimination shall be made through the use of any inventory management method recognized in the Generally Accepted Accounting Principles of the Party in which the production is performed or otherwise accepted by the Party in which the production is performed.
2. Each Party shall provide that an inventory management method selected under paragraph 1 for particular fungible goods or materials shall continue to be used for those fungible goods or materials throughout the fiscal year of the Party that selected the inventory management method.
Article 3.15. Sets of Goods
Sets, as defined in General Rule 3 of the Harmonized System, shall be regarded as originating when all component goods are originating. However, when a set is composed of originating and non-originating goods, the set as a whole shall be regarded as originating, provided that the value of non-originating goods does not exceed 15 percent of the Ex-works price or FOB price of the set.
Section B. TERRITORIALITY AND TRANSIT
Article 3.16. Principle of Territoriality
1. The conditions for acquiring originating status set out in Article 3.2 must be fulfilled without interruption in the territory of the Party concerned.
Where an originating good exported from the territory of a Party to a non-party returns to the exporting Party it shall be considered as non-originating unless it can be demonstrated, to the satisfaction of the customs authorities, that:
(a) the returning good is the same as that exported; and
(b) it has not undergone any operation beyond that necessary to preserve it in good condition while in that non-party or while being exported.
2. The acquisition of originating status set out in Article 3.2 shall not be affected by working or processing done outside a Party on materials exported from that Party and subsequently re-imported, provided:
(a) those materials are wholly obtained in the exporting Party or have undergone working or processing beyond the operations referred to in Article 3.8 prior to being exported; and
(b) it can be demonstrated to the satisfaction of the customs authorities that:
(i) the re-imported goods have been obtained by working or processing the exported materials; and
(ii) the total added value acquired outside a Party by applying this Article does not exceed 15 percent of the ex-works price of the end good for which originating status is claimed.
3. For the purposes of paragraph 3, the conditions for obtaining originating status set out in Section A shall not apply to working or processing done outside the exporting Party. However, where a RVC tule is applied in determining the originating status of the end good, the total added value acquired in the territory of the exporting Party shall not be less than the stated RVC percentage for the end good.
4. Paragraphs 3 and 4 of this Article shall not apply to goods which do not fulfil the conditions set out in Article 3.8 or which can be considered sufficiently worked or processed only if the general tolerance of Article 3.7 is applied.
5. For the purposes of applying paragraph 3(b)(ii), "total added value" shall be taken to mean all costs arising outside the exporting Party, including the value of the materials incorporated there.
6. Any working or processing of the kind covered by this Article and done outside the exporting Party shall be done under the outward processing arrangements, or similar arrangements.